Question
Write a note on Payment of dividend.

Answer

  • The dividend is the portion of the company’s profits that is distributed among the shareholders of the company.
  • The dividend is paid through the Dividend Warrants or through Electronic Mode i.e. ECS, NEFT, etc. to the registered shareholders.
  • The rate of dividend is recommended by the Board of Directors.
  • It is declared and approved by shareholders in the Annual General Meeting.
  • The dividend is to be paid to the shareholders within 30 days from the date of declaration.
  • The letter related to the payment of the dividend is sent to the concerned shareholders. The letter contains detailed information regarding the payment of dividends.

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